After years of ballooning budget deficits, California finally seemed on firmer footing. Unemployment remained high, but revenues and housing prices were up. Taxpayers even voted themselves a tax increase to bring deficits down.
And then came the automatic federal budget cuts known as sequestration.
As the $85 billion in spending cuts slowly roll out nationwide, California officials are girding themselves for a blow not only to the state’s large military industry but also to its nascent economic recovery. Still, experts say, it will most likely slow down, though not derail, the state’s economic growth.
Despite its recent malaise, California’s economy is still the ninth largest in the world. If the sequester is really going to impact it this much, perhaps the state might want to get back to the business of business, and not the business of government. It is difficult to imagine the Golden State of old experiencing even a moment’s panic in years past because of what economic havoc some temporary lull in gifts from the federal government would cause. But that was back in the day when all kinds of weird stuff was happening, like movies and television shows being made in Hollywood, for instance, and not Canada.